The MTN-Bharti Airtel plan to create one of the top 10 telecommunication operators in the world has been inspirational news for the sagging markets as well as investors, but not for the workers who are directly affected with this mega deal.

South Africa's powerful federation of trade union, Congress of South African Trade Unions, (COSATU) has already expressed its concerns over the proposed deal.

''We remain concerned about the loss of South African control of another important company. MTN-Bharti deal involves the pursuit of 'synergies', it's likely to involve job cuts either here or in India - and given the lower cost base in India, the location of the cuts is pretty obvious,'' COSATU spokesman Patrick Craven said in an interview to a South African website.

"However, looking at the deal, it's not on the same scale as the Vodafone-Vodacom deal. MTN never had a big public stake. There was a 50-per cent public stake in Vodacom, so the deal won't mean any loss of public control.

"That said, we shall monitor the situation with great interest. If Bharti should seek a bigger proportion, for example, we may object strongly, it would mean a whole industry slipping out of South African control and accountability."

The Communications Workers' Union has not yet made any comments on the deal; according to secretary-general Gallant Roberts, the organisation is waiting for more information about the deal.

In order to pacify the unions, MTN, while issuing a statement on the proposed deal, said that potential transaction would not lead to any job losses in South Africa.

Moreover, major MTN private-sector shareholders, including investment management firms Allan Gray, Polaris, Coronation and Stanlib are keeping mum on the deal.

South African media reports quoted Polaris' Anthony Sedgwick, co-manager of the Nedgroup Investments Rainmaker Fund that owns 6.3 million MTN shares, as saying he does not want the deal to go ahead.

Public Investment Corporation (PIC), a pension fund that holds over 13.3 per cent in MTN, is yet to give a thumbs-up to the proposed deal with Bharti. But so far, since Bharti and MTN have not clarified the finer details of the deal structure and it is therefore not clear if the deal involves PIC selling its entire holdings or a part of it.

It is to be remembered that just ten days ago, a last-minute court ruling was needed for Vodafone of the UK to go ahead with plans to acquire a majority stake in the country's biggest mobile telecom company, Vodacom. The local regulators reversed its earlier decision only in the 11th hour.

Although, the South African resentment of foreign takeovers is very strong, a partnership with an Indian group may be less threatening than if the would-be suitor was from Europe or the US, some opined. According to them, cultural connections between South Africa and India are very deep rooted.

The recently concluded cricket tournament enhanced the popularity of India in the country, one analyst said, adding that the timing of the deal also seems good.